Sigma Designs (NASDAQ:SIGM) Chip Demand Rising

Demand for televisions with chips from Sigma Designs (NASDAQ:SIGM) in them, along with an improving supply chain, resulted in the company beating estimates in the third quarter.

Going forward, BWS Financial said, "We are currently projecting a sequentially down quarter with revenue of approximately $71.1 million. The decline stemming from reduced IPTV installments during the end of the calendar year. Any hint of SIGM being able to maintain an EPS level of $1.30/$1.35 could be met with some buying opportunity."

Revenue for the quarter increased to $77.8 million, over twice the same quarter in 2009. Gross profit increased to 49.6 of sales, beating the 47.7 percent in the prior quarter, and the 45.3 percent in the same quarter last year.

With supply and demand in balance, it could be a catalyst going forward for Sigma.

They closed Wednesday at $12.12, gaining $0.12, or 1 percent.